{"id":7717,"date":"2023-10-02T01:28:21","date_gmt":"2023-10-02T01:28:21","guid":{"rendered":"https:\/\/techovedas.com\/?p=7717"},"modified":"2023-12-21T20:36:46","modified_gmt":"2023-12-21T15:06:46","slug":"5-factors-that-will-shape-semiconductor-industry-in-2024","status":"publish","type":"post","link":"https:\/\/techovedas.com\/5-factors-that-will-shape-semiconductor-industry-in-2024\/","title":{"rendered":"5 factors that Will Shape Semiconductor Industry in 2024"},"content":{"rendered":"\n

The semiconductor industry is on the verge of a transformative era, with multiple factors converging to redefine its landscape in 2024. The demand surge propelled by the automotive industry’s evolution, strategic nationalization initiatives, and the impact of geopolitical tensions on supply chains are key focal points. Moreover, the integration of Artificial Intelligence (AI) is poised to lead industry growth, necessitating cutting-edge semiconductor technology. Amidst this, addressing talent shortages becomes critical for sustained progress. Join us as we explore how these factors intertwine, steering the course of the semiconductor industry in the coming years.<\/p>\n\n\n\n

The semiconductor industry, vital for modern tech, is on the brink of dynamic change. In this blog, we’ll explore five major factors shaping the semiconductor market in 2024 and beyond.<\/p>\n\n\n\n

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1. The Automotive Industry<\/strong><\/h3>\n\n\n\n

The automotive industry is in the midst of a seismic shift, with a sharp pivot towards electric vehicles (EVs), autonomous driving, and connected vehicles. These advancements heavily rely on sophisticated semiconductor technology, driving an unprecedented demand for specialized chips. Industry analysts predict that automotive semiconductor revenue will surge, reaching an estimated $200 billion annually by the mid-2030s and catapulting to over $250 billion by 2040[^1^]. This surge in demand is poised to significantly impact the semiconductor industry, driving innovation and spurring expansions in manufacturing capacities in 2024.<\/p>\n\n\n\n

2. Nationalization of Semiconductor Technology<\/strong><\/h3>\n\n\n\n

Worldwide, governments acknowledge the importance of semiconductor manufacturing. This awareness has spurred various initiatives to strengthen local capabilities and ensure supply chain security. For instance, the European Chips Act plans to boost semiconductor production in the EU, injecting significant investments for self-sufficiency and reduced reliance on external sources.This act plans to combine \u20ac15 billion of public and private investments with the existing \u20ac30 billion earmarked for enhancing semiconductor manufacturing on the continent[^2^]. Such strategic investments aim to elevate the semiconductor industry role in national and regional economic agendas in 2024.<\/p>\n\n\n\n

3. US-China Trade War and Sanctions<\/strong><\/h3>\n\n\n\n

Geopolitical tensions, particularly the ongoing trade disputes and sanctions between the United States and China, have had a ripple effect on the semiconductor industry. Disruptions in the global supply chain due to trade restrictions have amplified concerns about supply chain security and resilience. Semiconductor companies are now strategically reassessing their operations, diversifying their supply chains across regions, and exploring alternative markets to mitigate risks arising from geopolitical conflicts[^3^]. This geopolitical landscape is influencing business strategies, manufacturing decisions, and research and development investments within the industry.<\/p>\n\n\n\n

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China: Too large, Too important & Too strategic to walk away from<\/a><\/blockquote>